“From 12 February 2018, the National Bank of Ukraine suspends the placement of deposit certificates with a maturity term of three months, taking into account the return of the Ministry of Finance to the domestic market of short-term government debt,” the institution said.
According to the report published on the institution’s website, currently there are other indicators for the cost of three-month hryvnia-pegged on the monetary market, and the formation of a yield curve on the relevant segment may occur without the placement of three-month deposit certificates.
“First of all, the Ministry of Finance places three-month government domestic loan bonds and then, there is a lot of government bonds with short maturity terms already on the market (the volume of these securities with a maturity of up to three months is $521 million). Market actors have enough tools for trading, and they frequently conduct transactions with government bonds with maturity of up to three months in the secondary market,” the regulator said.
Nevertheless, the National Bank does not rule out the possibility of return to the placement of three-month deposit certificates if conditions change. This will be necessary to improve the efficiency of the transmission mechanism of the monetary policy of the central bank.